NEIGHBORHOOD
REVITALIZATION PLAN
HUTCHINSON |
The City of Hutchinson offers property
owners a ten-year incremental rebate
on the increase in property tax incurred
as a result of new construction/ renovation.
Residential, commercial, and industrial
properties are eligible for this rebate.
To be eligible, the property must be
south of 11th Street, and located within
city limits. Industrial building permits
must have a minimum market value of
$15,000 and |
improvements to the property must
increase its appraised value by at least
15%. The property must also be, and
remain, current on property taxes and
special assessments.
If a building is located within the
Hutchinson downtown area, it will be
eligible for a higher tax rebate. Historically
designated properties are eligible for
a 100% tax rebate of a property tax
increase due to improvement for each
of the ten years. |
| Example: |
INCREMENTAL
TAX REBATE
TOTAL
AND DOWNTOWN |
 |
| Table represents an
incremental tax rebate on industrial
/ commercial property with an increased
appraised value of $300,000. |
| |
| $300,000 x .25 Assessment
Rate = $75,000.00 |
| $ 75,000 x .150.892 Mill
Rate = $11,316.90 |
| |
| |
TOTAL |
REBATE |
DOWNTOWN |
REBATE |
| Year 1 |
95% |
$10,751.06 |
95% |
$10,751.06 |
| Year 2 |
85% |
$ 9,619.37 |
95% |
$10,751.06 |
| Year 3 |
75% |
$ 8,487.68 |
95% |
$10,751.06 |
| Year 4 |
65% |
$ 7,355.99 |
95% |
$10,751.06 |
| Year 5 |
55% |
$ 6,224.30 |
95% |
$10,751.06 |
| Year 6 |
50% |
$ 5,658.45 |
50% |
$ 5,658.45 |
| Year 7 |
50% |
$ 5,658.45 |
50% |
$ 5,658.45 |
| Year 8 |
50% |
$ 5,658.45 |
50% |
$ 5,658.45 |
| Year 9 |
50% |
$ 5,658.45 |
50% |
$ 5,658.45 |
| Year
10 |
50% |
$ 5,658.45 |
50% |
$ 5,658.45 |
|
| Total |
|
$70,730.65 |
|
$82,047.55 |
|
| PROPERTY
TAX EXEMPTION |
The governing bodies of
Hutchinson and Reno County approved a new
property tax exemption policy in June 2007. Businesses
engaged in manufacturing, distribution,
or research and development are eligible
to apply for a tax exemption on new construction. An exemption
may be granted by the local governing
body if it is determined that additional
jobs will not be created or existing
jobs would not be retained unless an
incentive is granted.
According to the philosophy of the policy, a private business should not |
receive tax incentives unless a public good is served. The incentive must be
expected to significantly enhance economic growth and development, and aid in creating new jobs or retaining existing jobs.
The policy provides a 10-year, 100% tax abatement on new construction for companies creating at least 10 new jobs with an annual payroll of $250,000.
The governing bodies will be more favorable to applicants that provide a comprehensive employee health insurance plan which is funded at least in part by a significant employer contribution to the plan.
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